Every year, based on your income, investments, and expenses, you can reduce your taxable income by claiming deductions under specific sections of the Income Tax Act. These deductions are claimed at the end of the financial year and require proper documentation and accurate reporting.
Among all tax-saving provisions, Section 80C, Section 80D, and Section 80G are the most commonly used, as they allow individuals to significantly lower their tax liability when planned well.
While tax-saving instruments help reduce taxes, it is equally important to balance them with safe, predictable investments that protect your surplus savings. This is where Bajaj Finance Fixed Deposits can complement your overall financial plan after you exhaust tax-saving limits.
Section 80C
Section 80C allows you to claim deductions of up to Rs. 1.5 lakh in a financial year. These deductions apply to investments and expenses made by an individual or a Hindu Undivided Family (HUF). Investments can be made in your own name or in the name of your spouse and children, but the overall limit remains Rs. 1.5 lakh.
Investments eligible under Section 80C include:
- Life insurance policy premiums
- Employee Provident Fund (EPF) contributions
- Public Provident Fund (PPF) contributions
- Sukanya Samriddhi Account
- National Savings Certificate (NSC)
- ULIPs
- Equity-linked investments and debentures
- Tax-saving term deposits with a 5-year lock-in
- NABARD bonds
- Senior Citizen Savings Scheme (subject to conditions)
Certain expenses can also be claimed under this section, such as:
- Tuition fees for up to two children
- Principal repayment of a home loan
- Stamp duty and registration charges on property
Important information: Once you exhaust your Rs. 1.5 lakh limit under Section 80C, additional savings do not qualify for tax benefits.
After using your 80C limit, parking surplus funds in a Bajaj Finance Fixed Deposit helps you earn stable, predictable returns without market risk. Check rates.
